Long-term Advertising Effects and Optimal Budgeting

Using pure single-source data, this paper provides evidence for the
existence and magnitude of long-term advertising effects across FMCG product
categories. Furthermore, we focus on the difficulties that arise for wellestablished
brands when new products are introduced into the market and
product innovations take place. Our research shows that such occurrences
drastically alter the relationship between share of voice and share of market in
any given FMCG market, hence making it pivotal for marketers to focus on such
relationships in order to maintain market position.